Sustainable Management of Nestlé's Cocoa Supply Chain in the Ivory Coast-Focus on Labor Standards
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Improving Workers’ Lives Worldwide
Sustainable Management of Nestlé’s Cocoa Supply Chain in
the Ivory Coast—Focus on Labor Standards June 2012
Executive Summary
In November 2011, FLA commissioned a team
of 20 local and international experts to conduct
an assessment of Nestlé’s cocoa supply chain
in the Ivory Coast. The assessment team included
representatives from the Centre de Recherche et
d’Action pour la Paix, Abidjan; Afrique Secours et
Assistance; Human Resources Without Borders; the
Sustainable Livelihoods Foundation, and the FLA.
The goals of the assessment were to: map
stakeholders in Nestlé’s cocoa supply chain; map
Nestlé’s cocoa supply chain in the Ivory Coast;
and assess the associated labor risks in Nestlé’s
cocoa supply chain.
FLA’s assessment of the cocoa supply chain
builds on existing research and focuses not on
counting the number of children working in the Discussion with farmers in a camp
industry, but rather on evaluating the root causes
and means available to build a robust monitoring and remediation system. The report identifies gaps in Nestlé’s
internal management systems and their effect on labor risks in the supply chain. The report also provides detailed
recommendations to Nestlé, the government, and other international buyers on how to mitigate risks to workers
throughout the global supply chain.
The field visits to the Ivory Coast were initially planned for December 2011, but due to security reasons around
parliamentary elections, the visits by the assessment team were delayed until January 2012. To develop a full
understanding of the risks facing workers in the sector, the assessment team consulted with a number of government
institutions, civil society organizations and local associations in the Ivory Coast. They also visited seven Nestlé suppliers
representing 79% of the volume of beans or cocoa products purchased by Nestlé from the Ivory Coast in 2011. The
assessment gathered data through:
•individual and group interviews;
•on-site observations in processing facilities, buying centers, cooperatives, nurseries and farms;
•documentation review of The Nestlé Cocoa Plan and at the suppliers, cooperative and farm level; and
•observations in the villages and camps.
In the course of three field visits, the assessment team visited 87 farms and interviewed a representative
sample of 466 men, women and children on the farms. Overall more than 500 interviews were conducted
during the assessment.
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Stakeholder Mapping
The assessment team developed a comprehensive map
Contents
of stakeholders, including local and national actors in the
Executive Summary........................................................... 1
governmental, nongovernmental, and private sectors.
I. Introduction.................................................................... 4
Most existing programs and stakeholder efforts
II. Background.................................................................... 6
concentrate on the elimination of the worst forms of
1. The Cocoa Sector in the Ivory Coast................. 6
2. Nestlé’s Strategy Related to Cocoa Sourcing child labor rather than on aspects such as forced
in the Ivory Coast.................................................. 8 labor, wages and benefits, and health and safety even
III. Methodology................................................................11 though they could have a causal effect on the
1. Assessment Team..................................................11 presence of child labor.
2. Assessment Stages...............................................11
3. Stakeholder Engagement...................................13
4. Data Collection.....................................................14 Supply Chain Mapping
5. Tools for Data Collection.....................................18 The assessment team mapped the cocoa supply chain
IV. Findings........................................................................18 in great detail, including Nestlé’s headquarters in
1. Stakeholder Mapping...........................................18 Switzerland R&D in Abidjan and local operations in the
a. Governmental Stakeholders.........................19
Ivory Coast; Tier 1 suppliers of Nestlé1; subsidiaries in
b. Non-Governmental Stakeholders................21
c. Local Communities and Village Level West Africa of Tier 1 suppliers; processing facilities and
Committees.................................................... 23 buying centers in the Ivory Coast; third-party service
d. Conclusions of Stakeholder Mapping........ 23 providers; traitants; cooperatives; pisteurs; farmers;
2. Supply Chain Mapping........................................ 25
sharecroppers; and workers.
a. Supply Chain Actors..................................... 25
b. Cocoa Bean Processing and Cocoa procurement in the Ivory Coast occurs to
Procurement................................................. 29 a large extent (80-85%) outside of cooperatives and
c. Farm Profile and Estimated Volumes.........31 through the “unorganized” sector, involving many
d. Conclusions of Supply Chain Mapping...........31
intermediaries. The majority of the actors (pisteurs,
3. Risk Assessment.................................................. 32
3.1 Task and Risk Mapping...................................... 32 coxers and farmers) are not registered. Cooperatives
3.2 Risks in Internal Management Systems.........34 involved in the sustainability programs of companies
a. Policies............................................................34
exporting cocoa from the Ivory Coast make up a small
b. Procedures..................................................... 35
c. Results............................................................ 38 proportion of the cocoa market. Additionally, the
d. Conclusions on Internal Management supply chains are not stable, as participants sell and buy
Systems............................................................... 39 from anyone. Furthermore, competition around good
3.3 Labor Risk Assessment................................... 40
quality suppliers is intense and cooperatives maintain
a. Employment Relationship.......................... 40
b. Forced Labor..................................................41 relationships with several buyers and adjust the
c. Child Labor......................................................41 volume supplied to them depending on the terms they
d. Harassment or Abuse...................................46 are offered. This instability in the supply chain make
e. Non-Discrimination.......................................46
f. Health, Safety, Environment........................ 47
transparency, monitoring and remediation
g. Freedom of Association and efforts challenging.
Collective Bargaining...................................50
h. Hours of Work................................................51
Risk Assessment
i. Compensation................................................ 52
j. Conclusions on Labor Standards Risks......54 The assessment of risks in Nestlé’s cocoa supply
chain focused on child labor; the presence and
V. Overall Conclusions.................................................... 55
effectiveness of the internal management systems
VI. Recommendations.................................................... 56
a. To the Government of the Ivory Coast...... 56 within Nestlé’s supply chain with regard to labor
b. To Nestlé and Other Industry Members....57 rights; and adherence to labor standards embodied in
c. Future Research............................................ 58 the FLA Workplace Code of Conduct and Compliance
Annex 1: Pictorial Journey of Cocoa Beans................. 59 Benchmarks. A complete analysis of the risks related
Glossary............................................................................66 to Nestlé’s internal systems, along with an overview
of associated risks with respect to the FLA Code of
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Conduct, can be found in Section IV.3.
Children are at risk in every phase of cocoa production.
Such risks include injury from machetes during the
preparation of the land, maintenance of the farm and
harvesting of the cocoa beans; injury from physical
strain during the nursing and planting of seedlings as
well as carrying heavy loads; and exposure to harmful
chemicals in the application of fertilizers and pesticides.
A full description of child labor risks can be found in
Table 10.
The Nestle Cocoa Plan (TNCP) offers a good starting
point to improve labor conditions on cocoa farms in
the Ivory Coast because its components could provide
holistic solutions to mitigate some of the issues the
cocoa sector is grappling with apart from child labor. To
make TNCP a well-rounded developmental program,
some improvements have to be made, followed by the
scaling up of the program.
Conclusions
Among the main conclusions of FLA are:
•
Nestlé, due to its leverage and the volume of
beans procured, is well positioned to make a large
Suggestions box at a TNCP cooperative
positive impact on the livelihoods of workers in
the cocoa supply chain.
•
The Nestlé Cocoa Plan and participation in other other industry actors. All parties should therefore
initiatives provide the building blocks for a more combine forces in enhancing supply chain mapping
robust and deep reaching program. and transparency, monitoring and capacity
•
With some adjustments and improvements, TNCP building programs.
has the makings of a well-rounded developmental • Besides efforts from the private sector, farmers
program. Enhanced monitoring and increased and their communities, the role of government
accountability from the various tiers of suppliers is is crucial in the development of a sustainable
a must to make the supply chain more sustainable. cocoa sector.
•
Several risks in terms of labor standards have
been identified, especially in the areas child labor, Recommendations
forced labor, health and safety, discrimination and The report makes a number of recommendations, including:
compensation. To the Government of the Ivory Coast
•
Child labor is still a reality on cocoa farms in the • Consider filling regulatory gaps with respect to
Ivory Coast and has its roots in a combination labor standards in the agriculture sector
of factors. A realistic strategy to eliminate child • Consider establishing a national registration
labor in the Ivory Coast needs to start with the system for farmers and pisteurs
attitudes and perceptions of the various actors in • Consider developing a sector-wide sustainability
the supply chain and communities at large. One standard for cocoa with multi-stakeholder
company alone cannot solve all the problems of engagement
labor standards that prevail in the cocoa sector of • Continuously improve the child labor monitoring
the Ivory Coast. and rehabilitation system
•
Large parts of the supply chain are shared with • Broaden the scope of the Agents (Relais) under the
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“Système de Suivi du Travail des Enfants” (SSTE)
• Target remote communities with rural
development interventions
• Foster alternative income generation and
employment generation at the village level
• Address problems posed by the lack of schools
and teachers
To Nestlé and other Industry Members
•Strengthen Nestlé’s supplier Code of Conduct
•Increase awareness and understanding about
the Nestlé Code of Conduct amongst upstream
suppliers
•Define clear roles and responsibilities for Nestlé,
staff, suppliers, cooperatives and farmers
•Include comprehensive key performance indicators
and reporting requirements on labor standards
•Increase awareness among farmers about the
policy of financial premiums
•Develop a robust internal monitoring and
remediation system
•Examine the role that cooperatives and other
established localities could play as a hub for
extension services
•Facilitate collaboration and communication
Another way of explaining Good Agricultural Practices
between local and international stakeholders
•Scale up efforts for the Nestlé Cocoa Plan in the
standard supply chain The objectives of this assessment are as follows:
•Address the issue of child labor through immediate 1. Mapping of stakeholders in Nestlé’s cocoa supply
steps involving a bottom-up approach. chain
•Create alternative income creation opportunities 2. Mapping of Nestlé’s cocoa supply chain in the
for farmers and their families Ivory Coast
3. Assessment of the associated risks in Nestlé’s cocoa
supply chain
I. Introduction The study is not intended to generate another
Based on the Memorandum of Understanding on estimate about the number of children working in cocoa
Cooperation between Nestlé and the Fair Labor production, but to capture the risks and causes of child
Association (FLA) of July 28, 2011, Nestlé invited the labor in Nestlé’s supply chain and the means available
FLA to conduct an assessment of their cocoa supply to build a robust monitoring and remediation system.
chain in the Ivory Coast.2 Nevertheless, since child labor is identified as the priority
The Fair Labor Association Inc. (FLA) is a non-profit issue in the cocoa sector in the Ivory Coast, it is reported
organization that combines the efforts of business, in some detail in this report. Several other aspects of
civil society organizations, and colleges and universities working conditions are also analyzed that may have an
to promote and protect workers’ rights and to improve effect on, and are in turn affected by, child labor.
working conditions globally through adherence to The assessment process follows the FLA’s sustainable
international standards. compliance methodology (See Box 1) that starts with
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box 1 FLA’s Sustainable Compliance Methodology for the Agricultural Sector The cultural and socio-demographic conditions in the agricultural sector call for a strategy based on socio-economic empowerment as opposed to auditing. The FLA’s sustainable compliance methodology is an innovative approach that aims at filling the gaps left by the pure audit method, which mainly identifies compliance violations and provides “quick fix” solutions to improve the next round of results. FLA’s approach overcomes this weakness and strengthens the capacity of suppliers and workers to improve and eventually achieve self-sustainable systems. The FLA sustainable compliance methodology is a combination of assessment and participatory approach that aims at identifying the underlying cause(s) of persistent and serious non-compliances and devise means to overcome these problems. The process has the following main elements: I. Needs Assessment The process starts with mapping exercises (supply chain, involved stakeholders and task and risk mapping). These mappings will help identify the high-risk areas and tasks involved in the supply chain. The results of the mapping studies will be shared with relevant local and international stakeholder during in-country multi-stakeholder consultations to identify and agree on the priority issues to be monitored and remediated. Once the priority issues are established, an in-depth root cause analysis based on the data gathered from the field is conducted. II. Capacity Building FLA recognizes that various actors in the supply chain need facilitation and coaching when it comes to improving working conditions. In order to do so FLA has designed awareness and capacity building trainings and modules that specifically target the root causes of the issues and impart skills and knowledge to the various actors in the supply chain. The FLA identifies reliable, competent and skilled local service providers and carries out Training-of-Trainer workshops for them. The service providers then work with the local stakeholders on a long-term basis to improve working conditions. The service providers are responsible for adapting the trainings to the local conditions and in local language and informed by the mapping exercises. The FLA staff supervises this process. III. Impact Assessment The impact assessment is done at two levels. The first involves measurement of progress at periodic intervals through pre-defined key performance indicators. And second, there is an impact assessment at the conclusion that measures the impact of successful implementation of the capacity building efforts. This is conducted by measuring the installation of management systems and actual improvement in the labor conditions in the supply chain. mapping exercises (stakeholder mapping, supply recommendations to mitigate those risks. chain mapping and task and risk mapping). The findings in this report represent a first step Consistent with the FLA’s approach of continuous and should result in a better understanding of Nestlé’s monitoring and improvement, we are taking the cocoa supply chain in the Ivory Coast, the associated long-term view and looking at Nestlé’s supply chain risks and relevant stakeholders in the field. This is the management practices and assessing how Nestlé first of a series of assessments and remedial activities manages labor risks. Therefore, the report highlights designed to improve supply chain management gaps in internal management systems and their practices and thereby working conditions on the effect on labor risks in the supply chain followed by ground in the Ivory Coast. 5 www.fairlabor.org
II. Background 35% of global production8) and largest exporter. Currently,
Several studies have been conducted about the Ivory the cocoa industry employs more than 600,000 farmers
Coast’s cocoa sector. The following section extracts the and 6 million people depend on cocoa for their livelihood
relevant context needed to understand the findings in the Ivory Coast.9
presented in this report. The first section sets out the Due to its economic importance, cocoa plays a
importance of the cocoa sector in the Ivory Coast. The political role in the Ivory Coast as well. For example,
second section then describes Nestlé’s strategy in the President Alassane Ouattara banned cocoa exports
cocoa supply chain in the Ivory Coast. for a month during the most recent civil war in
order to cut sources of financing for Laurent Gbagbo
1. Importance of Cocoa Sector in the Ivory Coast (his opponent in the elections), thereby provoking
Once an expanding economy in Western Africa, the protests from small farmers who faced loss of
Ivory Coast has suffered a set-back in the past decades, income.10 Earlier, the Ivorian government had fully
most recently during 2010/2011 with a civil war liberalized the cocoa sector in 1999, in return for the
surrounding the election of current President Alassane Ivory Coast benefitting from the Heavily Indebted
Ouattara. Poverty ratios have increased sharply since the Poor Countries (HIPC) debt forgiveness scheme
1980s, with 46% of the almost 22 million population3 of the International Monetary Fund (IMF).11 The
considered as poor in 2008, and 24% living in extreme current government is conducting a reform of the
poverty.4 Poverty is substantially more prevalent in rural sector, which partially reverses earlier measures
areas (54%) than in urban areas (29%).5 while allowing the country to continue to have
The Ivory Coast’s economy is heavily dependent on access to USD 3 billion of debt relief under HIPC.
agriculture and related activities, which engages roughly Among other elements, the government plans to set
68% of the population.6 Cocoa, originally from South a guaranteed minimum price for cocoa at farm gate
America, was introduced into the Ivory Coast’s agriculture level (defined before the main season starts; “vente
at the end of the 19th century. High world prices for cocoa à terme”) and reduce taxes from around 32% to 22%
in the 1950s encouraged increased production. After the of the export price; the government has already
independence of the Ivory Coast from France in 1960, established a coffee and cocoa board (Conseil du
forest reserves were opened, and further expansion of Café Cacao, CCC) whose objective is to oversee the
cocoa production from the east to the west of the country implementation of the reforms.12
was strongly encouraged by the first president of the Ivory There are two principal issues that affect the
Coast, Félix Houphouët-Boigny.7 Ever since, cocoa has economic feasibility of small-holder (< 5 hectares) cocoa
played a crucial role in the economy. The Ivory Coast is farmers in the Ivory Coast: (1) the low productivity of
currently the world’s largest producer of cocoa (around the farms; and (2) the low quality of the cocoa beans.13
Cocoa yields in the Ivory Coast are among
the lowest in the world, at between 200 and
500kg per hectare per season (for comparison,
yields are 1-2 tons/hectare in Indonesia).
With respect to quality, trees are ageing,14
the soil is eroding, and there is relatively
little new fertile land for cultivation as the
central and southern tropical rain forest belt
(where cocoa is cultivated) is rapidly shrinking
due to increasing drought in the region and
deforestation. Costs of inputs such as fertilizers
and pesticides are climbing, while soil is
exhausted, and diseases attack the old forest
cocoa tree stock. Global warming, resulting in
Boy coming back from the field on a Sunday less rain in the cocoa belt, is affecting the sector
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Action to Support Implementation of
the Harkin-Engel Protocol, expressing
their continued commitment to support
the implementation of the Protocol. A
Child Labor Cocoa Coordinating Group
(CLCCG) has been established and tasked
with meeting once a year to report on
progress made.17
According to the USDOL, the governments
of Ghana and the Ivory Coast have agreed
to conduct nationally representative surveys
during the 2013-2014 harvest season as per
the Framework of Action. Both governments
have been working on developing child labor
monitoring systems that would also serve
the function of linking children in need
of remediation with appropriate services.
Children working in a non-TNCP nursery filling polythene sleeves
The International Labor Organization’s
as well.15 More and more cocoa farmers are changing to International Program on the Elimination of Child
the cultivation of rubber or palm oil, as incomes from Labor (ILO-IPEC) currently implements two projects
these crops are more stable and maintenance after a related to the elimination of WFCL on cocoa farms:
first investment is easier. After a substantive drop in the
price of cocoa between the end of 1970s until the end • ILO Public-Private Partnerships (PPP) to expand
of 1980s, the price for cocoa recently increased again. and refine child labor monitoring system as well as
However, this did not necessarily lead to more net capacity building for national roll out (funded by
income for the farmers, as the cost of living increased the chocolate and cocoa industry).
and the local currency was devaluated sharply in 1994. • ILO-IPEC Cocoa Communities Project to increase
Social issues in the Ivory Coast, especially child understanding of child labor, implement plans
labor, have received a great deal of international to eliminate child labor, improve access to
attention. In 2001, the Harkin-Engel Protocol was relevant and quality education, create sustainable
signed, committing the industry to address the worst livelihoods, improve national capacity for child
forms of child labor (WFCL) and adult forced labor labor monitoring system, enhance capacities
on cocoa farms in West Africa. A joint foundation, of ILO constituents and partner organizations
known as the International Cocoa Initiative (ICI), (funded by USDOL).
was established to address WFCL. In addition,
individual companies in the sector started their As response to the Harkin Engel protocol (2001),
own initiatives to combat child labor. The Protocol the Governments of Ghana and the Ivory Coast have
stipulated that by July 2005, the chocolate industry established specialized agencies to deal with WFCL and
would develop standards of certification. An extension trafficking of children in the cocoa sector, developed
of the Protocol was agreed upon, giving industry 3 more frameworks to deal with WFCL, issued National Action
years to implement it.16 On September 13, 2010, the Plans that comprehensively addresses child labor
U.S. Department of Labor (USDOL), Senator Harkin, across various economic sectors, and conducted
Representative Engel, the Governments of the Ivory population-based surveys to determine the nature
Coast and Ghana, and representatives of the international and extent of WFCL in the production of cocoa. The
Cocoa/Chocolate Industry released the Declaration Organization of African Unity has adopted the African
of Joint Action to Support Implementation of the Charter on the Rights and Welfare of the Child. A new
Harkin-Engel Protocol as well as a Framework of regional agreement on child trafficking was signed in
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2006 by 26 countries from West and Central Africa complement the SSTE detection and rehabilitation
to combat child trafficking, demonstrating a growing program for child laborers in cocoa in the Ivory Coast,
willingness of countries concerned by the problem to which is beginning to gather pace. However, industry
take a leading role in tackling it.18 and government still have to reach an estimated 3600
The Government of the Ivory Coast has passed a law communities (96.21%) with remediation activities,
against child labor19 and conducted two studies (a small according to the Tulane report.
pilot study and a scaled-up certification study20 between Under the current administration, an inter-ministerial
2007 and 2008) through the Child Labor Monitoring committee has been established (Comité Interministériel
System in Cocoa Production (Système de Suivi du de lutte contre la traite, l’exploitation et de travail des
Travail des Enfants—SSTE). enfants), which is headed by the Minister of Labor,
A sector study21 conducted by Tulane University to coordinate all activities related to child labor and
(published 2011, funded by US Department of trafficking in all sectors (technical function). SSTE,
Labor) provides an overview of all public and private previously under the office of the prime minister, is
initiatives to eliminate WFCL in the cocoa sector in the now also attached to the inter-ministerial committee.
Ivory Coast and Ghana. Tulane University researchers Additionally, First Lady Dominique Ouattara is
conducted several representative household surveys leading a newly-created Oversight Committee (Comité
of child labor in the cocoa sector. These surveys national de surveillance des actions de lutte contre la
confirmed the prevalence of child labor on the traite, l’exploitation et le travail des enfants), which
farms (89% of the children interviewed confirmed will oversee the inter-ministerial committee. A wider
that they helped in cocoa production), as did the range of stakeholders (industry, NGOs) form part of
SSTE certification study. Children working in cocoa the Oversight Committee, and a national action plan is
agriculture are frequently involved in hazardous child under development.
labor and there is evidence of individual cases of Certification efforts (UTZ, Rainforest Alliance,
children exposed to WFCL other than hazardous work Fairtrade) have increased in recent years, driven by the
(child trafficking, forced labor, etc.). principal multinational and national companies operating
Public and private stakeholders in the Ivory Coast in the country as processors, exporters, and foreign
have reached several thousand children in the cocoa- buyers. Lately, a Certification Capacity Enhancement
growing areas with remediation interventions, including group, supported by the Ivorian government, has been
withdrawal, rehabilitation, reinsertion, education, and established. The goal is to capture synergies of the
vocational training services since 2001. These efforts different certification schemes. Also, a study evaluating
social, environmental and economic effects
of all three certification schemes is under
way (mandated by the Ivorian government,
conducted by the Global Business Consulting
Group and KPMG Ivory Coast).
2. Nestlé’s Strategy Related to
Cocoa Sourcing in the Ivory Coast
According to information provided by
the company, Nestlé buys around 10% of
the world’s cocoa supply, of which 37%
is procured from the Ivory Coast. Nestlé
currently has no cocoa buying centers in
the Ivory Coast and buys, apart from one
exception (a Fairtrade certified cooperative),
from exporters22 (henceforth called Nestlé’s
Another way of explaining worst forms of child labor Tier 1 suppliers). Therefore, Nestlé usually
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years, Nestlé has also invested an additional CHF 60
million in cocoa sustainability initiatives.
TNCP consists of the following components:
1. Plant Expertise and Propagation
2. Training
3. Traceability
4.Farmer Premiums
5. Social Projects
Plant Expertise and Propagation
To address the problem of ageing plants and low yields
of cocoa trees, agronomical intervention forms a large
part of the TNCP. Nestlé R&D in Abidjan (inaugurated
in April 200925), in collaboration with Nestlé R&D in
Tours, France and the Ivorian Agricultural Research
Centre CNRA (Centre National de Recherche
Agronomique) conducts research for new high potential
cocoa plantlets.26 Nestlé R&D supports cooperatives
participating in TNCP to develop and maintain plant
nurseries,27 buys materials needed,28 pays for the
salaries of the workers the cooperatives employ in the
Nestlé’s connection to the farmers through TNCP nurseries nurseries, and distributes plantlets. At present Nestlé
R&D tests the logistics demand of new plants and
supports its Tier 1 suppliers in their efforts for more distributes hybrid varieties bought from the Centre
supply chain sustainability. According to Nestlé, around National de Recherche Agronomique CNRA (135,000
20% of the cocoa it procures from the Ivory Coast is plants in 2010 and 600,000 plants in 2011). For the next
under The Nestlé Cocoa Plan (TNCP), whereas 80% season (2012/2013), the plan is to distribute somatic
corresponds to the “standard supply chain,” which up to embryogenesis plants (in vitro plants) coming from the
this point is not transparent and contains cooperatives, Nestlé R&D propagation laboratory and produced via
traitants, SARLs and pisteurs.23 cocoa flowers. As per Nestlé’s plan, a total of 12 million
Since 2001, Nestlé has participated in a number plantlets will be distributed between 2012 and 2022.
of cocoa-related initiatives and programs, such as the The fields are equipped with GPS, so Nestlé R&D can
International Cocoa Initiative (ICI) and the World Cocoa assure where they are and follow their development.
Foundation (WCF). In October 2009, Nestlé launched The plants spend 6 months in the nurseries before they
an internal initiative called The Nestlé Cocoa Plan are distributed to cooperative members, who apply for
(TNCP),24 which brings together all their past and future them. Plants are free of cost, but the farmers have to
initiatives that focus on ensuring a sustainable future make an investment29 in terms of cutting down old trees
for the cocoa industry worldwide and the communities and prepare the field for the new plants (at least 1/3ha
depending on it. Some initiatives are exclusive to for 500 plantlets).
Nestlé, some are initiated by others and supported by
Nestlé. The vision of TNCP is “to help cocoa farmers Training
run profitable farms, respect the environment, have a Farmers are trained in good agricultural practices30
good quality of life and for their children to benefit from (pre- and post-harvest) to increase the quality and
an education and see cocoa farming as a respectable yield of their farms. Training also includes some social/
profession.” To achieve this vision, Nestlé committed labor and environmental issues. The training system
CHF 110 million to the plan for 10 years. In the past 15 and provider depend on the certification system31 that
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the cooperative/farmer participates in and Nestlé’s Tier 1
supplier, but it is mostly conducted by ANADER (l’Agence
Nationale d’Appui au Développement Rural) in Farmer
Field Schools.32 A farmer field school consists of a group
of farmers (20-30) from the same or nearby villages
who meet for 4-5 hours around every two weeks guided
by a trained facilitator during the course of a cropping
cycle. While the approach leaves enough flexibility,
the curriculum covers the following areas: black pod
disease, pests such as mirids, farm sanitation and cultural
practices, soil fertility and fertilizer use, decision-making
about rehabilitating a cocoa farm, cocoa quality, child labor
sensitization, and HIV/AIDS sensitization.
Management of cooperatives is also trained on Community development activities explained by a partner
NGO of the International Cocoa Initiative
business and organizational practices to improve the
functioning of the cooperatives and to support them in Premiums
the preparation for certification.33 Training providers According to TNCP policy, if the cocoa delivered by the
vary depending on the certification and Nestlé’s cooperatives complies with the quality criteria set by
Tier 1 supplier. Additionally, cooperatives receive Nestlé and Tier 1 supplier (defects, slate, waste, foreign
infrastructure needed for the management of the matter/clusters/residue/flats, moisture), a premium is
cooperatives (e.g. computer, printer, motor bikes).34 paid at the end of the season by Nestlé through its Tier
1 suppliers. Apart from the premium, and depending on
Traceability the Tier 1 supplier of Nestlé, a higher price is paid per
Nestlé has a direct buying relationship with one kg for good quality. If the cooperative is not certified,
Fairtrade35 certified cooperative and an indirect it still receives a premium if it delivers according to the
partnership with around 35 other cooperatives36 via requested quality requirements. Once a cooperative
their Tier 1 suppliers, which have either already been successfully passed certification audits (which includes
certified while participating in TNCP, or are preparing assessment of labor standards at the cooperative and
and planning to become certified. TNCP started with farm level), it receives a higher premium under the
3 cooperatives in 2009. Since then, the number has certification scheme. In the case of UTZ37 and Rain
increased continuously, as new Tier 1 suppliers and Forest Alliance (RFA)38 certification, at least 50% of
cooperatives join the program. Some cooperatives have the premium is dedicated to the farmers. According
dropped out, either because they prefer to join another to farmers, cooperatives and Nestlé’s Tier 1 suppliers,
program, or because they are not meeting the quality/ cooperatives usually pay a higher percentage to the
volume goals set. Within TNCP, cocoa is traceable up to farmers and keep around 20% for bagging, marketing
each individual farmer, depending on the cooperative. or administration costs. In the case of Fairtrade
Nestlé knows from which cooperatives the cocoa is certification, the cooperative may keep the total
supplied and can therefore focus social programs or premium for administration costs and investments in
other projects to address the needs of the villages of the social projects39 for the member farmers. The premium
members of the cooperatives. for Fairtrade cocoa is fixed at USD 200/t (=0.20 USD/
Cocoa procured from the standard supply chain comes kg); the premium in the UTZ, RFA and TNCP scheme
through the same (and additional) Tier 1 suppliers. These is negotiated between the buyer and the cooperatives
suppliers buy from other upstream suppliers in the supply (usually between 0.10 and 0.20 USD/kg).40 Nestlé’s Tier
chain (Tier 2 suppliers) and/or through middlemen 1 suppliers sometimes also pay additional premiums
(traitants, SARLs, cooperatives). The lack of transparency on top of the premiums paid by Nestlé, both when they
in the standard supply chain poses far more challenges for deliver export quality that requires no further cleaning
monitoring and remediation than TNCP supply chain. or drying, or for loyalty.
10 www.fairlabor.orgbox 2 Assessment Team and Selection Criteria
FLA (2): Director, Agriculture and Strategic
Projects and Global Manager for Agriculture.
Independent External Experts (3): Executive
Director (Human Resources Without
Borders), Senior Researcher (Sustainable
Livelihoods Foundation), Supply Chain
Expert (TRASE—Tracing and Risk Assessment
Children going home from school in Divo
through Stakeholder Engagement). They were
selected based on their experience (over 20
Social Projects in Collaboration with Partners
years in the agriculture sector), knowledge
Nestlé invests in social projects (such as schools,
and expertise in cocoa sector, evaluation of
water and sanitation facilities, sensitization/local
management systems, certification programs,
development projects) in collaboration with different
labor standards review, supply chain mapping
global organizations (e.g., ICI, WCF, Red Cross). These
and traceability.
projects are located in some of the villages from where
the cooperatives source their cocoa and benefit the Local CSR professionals trained at CERAP
whole community, both non-farmers and farmers, (Centre de Recherche et d’Action pour la
whether or not they are members of the cooperatives. Paix, Abidjan) (6): A group of 6 people who
The villages where social programs are deployed are
conducted fieldwork were selected from
selected based on certain criteria set by respective
CERAP after training and evaluation. Selection
organizations and in accordance with government plans.
criteria included: knowledge about cocoa
(all of them had family members who were
cocoa farmers), knowledge of local dialects
III. Methodology and languages, and quality of reporting.
Local NGO ASA (Afrique Secours et
1. Assessment Team Assistance) (9): The second local group
The assessment team was made up of 20 people, 15 from
consisted of 4 teams (each with 2 people)
the Ivory Coast and 5 international experts, including 2
and a project manager from ASA—an NGO
FLA staff (See Box 2).
in the Ivory Coast with more than 15 years’
experience addressing child labor. The teams
2. Assessment Stages
from ASA were selected according to their
This first assessment and reporting took place from
November 2011 until March 2012 and was divided into knowledge and offices in the villages.
the phases presented in Table 1:
table 1 Assessment Stages
phase Time period Who Content & Objectives
Desktop Research November/ FLA Research on the Ivory Coast, the cocoa sector, labor issues
December 2011 and Nestlé’s supply chain in order to understand the
background and previous work.
Stakeholder Engagement November/ FLA, FLA Communication with several international NGOs (implementation
and External December 2011 external expert and campaigning) in order to understand their expectations
Information Gathering in the assessment and experience in the field.
(continues on page 12)
11 www.fairlabor.org(continued from page 11)
table 1 Assessment Stages
phase Time period Who Content & Objectives
Interviews Nestlé Head December 2011 FLA Interviews with Nestlé’s top management and staff involved
Quarter in cocoa sourcing from the Ivory Coast (Confectionery,
Procurement, Agriculture, Public Affairs) in order to
understand their opinions on TNCP and cocoa, the
strategies and systems in place as well as challenges.
Pre-Assessment Ivory December 2011 FLA Pre-Assessment in a cocoa farm; training and selection of
Coast: Selection independent local staff and interviews with local stakeholders in order to
of Local Research expert decide on the routes for the field visits; identification of local
Team and External partners and training of local partners for the assessment.
Information Gathering The pre-assessment also made it clear that a second team
was needed for a second, un-announced visit after the “FLA
Independent Experts Team” had left the field.
Preparation of December 2011 FLA & FLA Definition of the routes for the field visits; fine-tuning of
Assessment and 1st week independent methodology and tools.41
January 2012 expert A field visit was made to Gagnoa in the last week of
December to follow migrants that search for work in
cocoa farms. This was to understand the labor recruitment
process in the cocoa sector during peak production
season.
Assessment 1st Part 2nd week FLA & FLA Interviews in Abidjan with Nestlé Côte d’Ivoire, Nestlé’s
(Abidjan) January 2012 independent Tier 1 suppliers, governmental institutions and related
experts organizations.
Debrief and 2nd week FLA, FLA Analysis of data received and preparation of field visits.
Preparation January 2012 independent
experts and
local CERAP
team
Assessment 2nd Part 3rd week FLA, FLA 3 teams, each consisting of 2 CERAP professionals and a
(Field Visits) January 2012 independent team leader (FLA or FLA independent experts) on three
experts and different routes. This group mainly focused on the buying
local CERAP centers of Nestlé’s Tier 1 suppliers, cooperatives, traitants
team and pisteurs, the management systems and documentation
flows available, but also visited some nurseries, farms,
villages and camps.42 The visits were mainly announced;43
the focus was on the systems and document flows in
place as well as on potential labor issues.
Debrief January 2012 FLA, FLA Debrief with all three teams that went to the field:
independent preliminary conclusions, cross-check of data gathered,
experts and decision on further activities.
local CERAP
team
Assessment 3rd Part 4th week FLA Interviews with organizations and local experts, as well
(Abidjan) January 2012 as some 2nd round interviews with Nestlé Côte d’Ivoire
and Nestlé’s Tier 1 suppliers to cross check information
received in the field and make sure to have all relevant
information.
(continues on page 13)
12 www.fairlabor.org(continued from page 12)
table 1 Assessment Stages
phase Time period Who Content & Objectives
Assessment 4th Part January/ ASA Risk analysis of worst forms of child labor in different
(Field Visits) February 2012 villages and camps where TNCP farmers live. The objective
was to get an in-depth understanding of the situation in
terms of economic activity (with a focus on cocoa), social
infrastructure, and child protection.
4 teams of 2 people went to villages/camps from members
of TNCP cooperatives. They focused on the communities
as well as farms, and spent more time with farmers, their
families and workers. Inputs for the questionnaires used
were also derived from potential labor issues detected
in the 2nd part of the assessment. These visits were
unannounced and except for the FLA, no one was aware
that they were part of the assessment.
The data gathered could serve as baseline to assess the
socio-economic impact of TNCP and potential scaling up
effects for the mid- and long-term.
Assessment 5th Part 4th week CERAP team In the debrief after the 2nd part of the assessment, the
(Field Visits) January 2012 team decided that more interviews with participants in
the standard supply chain were needed and a team of
2 CERAP professionals conducted a field visit for another
5 days to Gagnoa to interview traitants, pisteurs and
non-TNCP cooperatives.
Report Writing and February/ FLA & Analysis of all reports received of different teams, data
Expert Feedback May 2012 independent triangulation and further verification of results in order to
experts prepare the report.
The report was shared in confidence with experts to
receive inputs on the report.
The field visits to the Ivory Coast were initially
planned in December during the beginning of the peak
harvest season. However, due to the local parliamentary
elections on December 11, 2011, the FLA team had to
wait until January, in case of potential unrest in the
country and subsequently, security reasons. The weeks
before, during and after Christmas were no options, as Taking a break at a cooperative warehouse
it was the first Christmas after the recent civil war and
none of the stakeholders were available for interviews. conducting interviews; obtain information on existing
Therefore, the FLA plans to undertake additional follow policies and programs; and identify credible local
up studies during peak season and at other times in the organizations in the field for purposes of information
year that will further refine data and risk assessment gathering and remediation.
presented in this report.
a. Governmental Institutions
3. Stakeholder Engagement The assessment team visited the following
Stakeholder consultations prior to, during, and after the governmental ministries and related institutions that
assessment is a crucial part of the FLA’s methodology. are involved in setting up policies, procedures and
These consultations are held for a number of reasons: programs in the cocoa sector. The objectives of the
external information gathering to refine the assessment meetings were to announce about the assessment
methodology; identify appropriate method of study and to gather information on the government
13 www.fairlabor.orgplans for improving monitoring and working Representatives of the following local associations
conditions in the cocoa farms: were visited:
•Office of First Lady Dominique Ouattara • Syndicat des producteurs individuels de café
•Ministry of Agriculture, including the Minister et cacao (SNAPRICC-CI)
•Ministry of Labor, including the Minister • Union Syndicale des Paysans de Côte d’Ivoire
•Ministry of Education (USYPA-CI)
•Comité de Gestion de la Filière Café-Cacao • Association des Femmes Productrices de
(CGFCC). Since January 20, 2012 it’s called CCC Café-Cacao du Sud-Bandama (AFPCC-SB)
(Conseil du Café-Cacao). • Syndicat des Pisteurs de Gagnoa
•Système de Suivi du Travail des Enfants (SSTE)
•Agence Nationale d’Appui au Développement Additionally, a couple of individuals knowledgeable
Rural (ANADER) in the sector but not necessarily related to a specific
organization were met in the Ivory Coast. Several phone
b. Civil Society Organizations44 calls and email communication complemented the picture.
A wide range of international and local NGOs,
associations and local consultants were visited or 4. Data Collection
interviewed (in Europe, USA and the Ivory Coast) The teams gathered information from actors directly
to gain a better understanding of the issues affecting involved in the cocoa supply chain. The interview
the cocoa sector, gather information prior to the partners were selected in two ways:
field visits and collect information on the various
projects that are being implemented and/or are (1) Upstream starting from Nestlé
under way. Nestlé’s Tier 1 supplier cooperative/
traitant pisteur farmers and;
Meetings and/or phone calls with representatives (2) Downstream starting from farmers
of the following international organizations pisteurs cooperatives/traitants.
were held:
• Berne Declaration a. Nestlé Staff in Vevey, London and Abidjan
• Cocoa Watch (local representative) Around 20 Nestlé staff members in Vevey
• International Cocoa Initiative (headquarters), London (trading) and Abidjan
• Solidaridad (local representative) (Nestlé Côte d’Ivoire and R&D center), involved in
• Stop the Traffik Netherlands cocoa procurement and TNCP were interviewed. The
• TFT Forests (local representative) staff interviewed from Vevey and London included
• Winrock International (including local the following functions: Procurement, Corporate
representative) Agriculture, Confectionery, Cocoa Manager and Public
• World Cocoa Foundation (including local Affairs. In Abidjan, the Managing Director of Nestlé
representative) Côte d’Ivoire, the General Manager of R&D and his team
• Danish Institute of Human Rights as well as the persons responsible for Public Affairs and
• International Labor Rights Forum the Nescafé Plan45 were interviewed.
Representatives of the following local organizations b. Direct Suppliers to Nestlé (Nestlé’s Tier 1 Suppliers)
were visited: The team visited 7 of total 14 Tier 1 suppliers (of which
• Afrique Secours et Assistance (ASA) one is a cooperative), representing 79% of supplied
• Centre d’Etudes, Formations, Conseils et Audits volume of beans and/or cocoa products to Nestlé from
(CEFCA) the Ivory Coast in 2011. They were selected according
• Femme-Action-Developpement (FEMAD) to volume sold to Nestlé, participation in TNCP and
• Fraternité sans Limites (FSL) availability46 in the Ivory Coast. The cooperative
• Renforcement des Capacités (RENFCAP) supplies only TNCP beans, 3 exporters supply TNCP
14 www.fairlabor.organd standard beans/products, 3 exporters supply only table 2 Routes Taken During the First Field Visit
standard beans/products to Nestlé. In addition to the
local headquarters, 1 processing facility (in Abidjan) and Team 1: Abidjan–Yamoussoukro–Sinfra–Gagnoa–Guitry–
Lakota–Divo–Abidjan
4 buying centers of the exporters were visited (in Sinfra,
Gagnoa, Daloa and Bouaflé). Team 2: Abidjan–Yamoussoukro–Issia–San Pedro–
Moussadougou–Soubre–Abidjan
c. Cooperatives, Villages/Camps and Farms Team 3: Abidjan–Yamoussoukro–Buafle–Zoukougbeu–
Daloa–Buyo–Toumodi–Abidjan
In total, 20 cooperatives47 and 2 unions of cooperatives
(one with 2 cooperatives, another with 4 cooperatives) cooperatives are located in the following towns/villages:
were visited. Cooperatives were selected using stratified Yamoussoukro, Toumodi, Issia, Sinfra, Daloa, Gonate,
random sampling based on location, certification type, Zoukougbeu, San Pedro, Gagnoa, Buyo, Moussadougou,
partner (Tier 1 supplier of Nestlé) and duration of Divo, Guitry, Lakota and Soubre.
participation in TNCP. The cooperatives in the 2 unions The routes taken had to be carefully planned
and 12 other cooperatives48 supply TNCP cocoa, while in advance for security reasons (checkpoints) and
7 cooperatives are not in TNCP, but their beans could availability of hotels.49 The teams of the first field visit
end up in Nestlé’s (or a competitors’) standard supply (FLA, experts and CERAP professionals) followed the
chain, as they deliver to Nestlé’s Tier 1 suppliers. The routes presented in Table 2 and Figure 1.
figure 1 Routes Taken During Assessment and Areas Covered50
15 www.fairlabor.orgThe first team visited the cooperatives, related other parts of the cocoa growing region in the Ivory
premises and farmers presented in Table 3. Coast, and a visit should take place at a later stage.
The cooperatives and farms located
table 3 Sample Visited and Interviewed During the First Field Visit
east of Abidjan (e.g., Akoupe, Aboisso,
Visits/interviews of Number Abengourou) were not visited, as Nestlé
sources from fewer cooperatives in that
Union of Cooperatives 2
region. Farms are generally larger (fewer
Cooperatives 20 small-scale farmers), and living conditions
as well as school availability are better
of which participating in TNCP 15
according to NGOs that work on the
of which potentially51 in standard supply chain of Nestlé 7 ground in these areas. Therefore, during
of which Fairtrade certified 52
2 risk assessment, the FLA decided to cover
this area at a later stage. Yet, the majority
of which UTZ certified 2
of the cooperatives in TNCP are located in
of which UTZ and RFA certified 2 the center-south region.
The second team that went to the field
of which UTZ, RFA and Fairtrade certified 1
(ASA) interviewed the villages/camps and
of which UTZ and/or RFA certification in progress 7 community members presented in Table
of which not certified 8 4. ASA received the lists of villages and
camps of farmers that belong to 8 TNCP
Nurseries of TNCP cooperatives 6
cooperatives55 from the first team that
Farms of TNCP cooperative members 8 did the assessment of the cooperatives
(assessment 2nd part). Based on these lists,
Farms not associated to TNCP cooperatives 8
4 villages/camps were selected for each
Villages/camps of TNCP cooperative members 5 region (Soubre, Buyo, San Pedro, Daloa,
Villages/camps not associated to TNCP cooperative members 5 Issia, Zoukougbeu) where ASA is active
and has experienced staff on the ground.
Farmers interviewed Ca. 3053
The villages were then selected based on
the experience ASA has in the region. This
Additionally, some infrastructure of the villages was was important for trust building, as according to ASA,
visited (health centers, schools). people are very hesitant to give information on child
Due to security reasons, the first assessment team
54
labor and become suspicious. In each village/camp, a
could not visit cooperatives and farms in the center sample of 17-23 people was interviewed individually.
west region (e.g., Man, Danane, Duekoue), where living The sample was compiled out of focus group discussions
conditions are, according to experts, worse than in conducted beforehand. The samples consisted of adults
Discussion with a village chief and his entourage Discussion with a cooperative’s management
16 www.fairlabor.org(men, women; farm owners, métayers, workers) and
table 5 Details of Localities (Camps) Visited in Each Area
children (girls, boys).
In the Soubré area, 15 farms were visited and 80 Visited Localities (villages/camps) Cooperatives56
people were interviewed. Young workers and children SOUBRE AREA
represented 61.25% of the interviewees (49 people)
1 Bohoussoukro V8 Cooperative 1
table 4 Sample Visited and Interviewed During the Second Field Visit 2 Sagboya V6
3 Kodaya V5
Visits/interviews of Number
4 Gnamboya V4
Villages/Camps visited 24
BUYO AREA
Farms visited 71
5 LBS Nopkoudou Cooperative 2
Total number of interviews 466 6 Noekro
of which with adults 341 7 Noufoukro
of which with children 125 8 Germainkouadiokro
SAN PEDRO AREA
of which with people working full time on cocoa farms 371
9 Niamkeykro Cooperative 3
of which with people working part time on cocoa farms 95
10 Morydougou
and adults 38.75% (31 people). Full time workers 11 Dotou Cooperative 4
represented 55% (44 people) of the interviewees and 12 Pont Nero
part-time workers 45% (36 people). DALOA AREA
In the Buyo area, 19 farms were visited and 80 people
13 Siéfla Cooperative 5
were interviewed. Amongst interviewees, 49 were young
14 Manhounou
workers and children and 31 were adult workers. 44 of the
interviewees were full time workers and 36 were part time. 15 Louénoufla
In the San Pedro area, 23 farms were visited and 90 16 Sikaboutou
people were interviewed. Young workers and children ISSIA AREA
represented 15.55% of the interviewees (14 people)
17 Diassa Cooperative 6
and adults 84.45% (76 people). Full time workers
18 Dobia
represented 74.44% (67 people) of the interviewees and
part-time workers 25.56% (23 people). 19 Namane
In the Issia area, 4 farms were visited and 70 20 Ghana Cooperative 7
people were interviewed. Young workers and children ZOUKOUGBEU AREA
represented 3% of the interviewees (2 people) and adults
21 Zokogbeu Cooperative 8
97% (68 people). All interviewees were full time workers.
22 Gueguigbeu
In the Daloa area, 5 farms were visited and 70
people were interviewed. Young workers and children 23 Garabo
represented 4% of the interviewees (3 people) and adults 24 Mahinahi
96% (67 people). All interviewees were full time workers.
In the Zoukougbeu area, 5 farms were visited and 76 workers, child labor, health & safety as well as social
people were interviewed. Young workers and children infrastructure presented in the findings below only
represented 8% of the interviewees (8 people) and adults relate to the field visit conducted by ASA. The findings
92% (68 people). All interviewees were full time workers. give an impression of the perception of all people
In all four areas 4 villages or camps each were visited interviewed in villages and camps where TNCP farmers
that are presented in Table 5. live. Further research needs to be conducted to establish
Statistical information about farmers, métayers, a comparison between TNCP and non-TNCP farms.
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